Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned deeply negative as operating cash flow reversed to an outflow and capital expenditure rose. Revenue declined from both the prior quarter and the year-ago quarter, while the free cash flow margin shifted from positive to a large negative.
- Revenue decreased, operating cash flow was negative, and capital expenditure increased, resulting in a free cash flow margin that was sharply negative. The conversion of revenue into cash was weak.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both deteriorated from positive to negative, while capital expenditure was higher. Year over year, revenue and operating cash flow were lower, and the free cash flow deficit widened as capital expenditure grew.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$19.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$9.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.8B
Cash generated by operations before capital spending.
CapEx
$7.4B
Capital spending and related asset purchases.
FCF margin
-78.5%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2022-07-02 | $15.3B | $809.0M | $7.2B | -$6.4B | -42.0% |
| 2022-10-01 | $15.3B | $1.0B | $7.3B | -$6.3B | -40.9% |
| 2022-12-31 | $14.0B | $7.7B | $5.7B | $2.0B | 14.3% |
| 2023-04-01 | $11.7B | -$1.8B | $7.4B | -$9.2B | -78.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 333.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 63.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Negative Operating Cash Flow and Elevated Capex
Operating cash flow turned negative while capital expenditure remained high, leading to a substantial free cash outflow. This combination is the strongest observable driver behind the quarter's cash conversion weakness.
The negative operating cash flow and elevated capital expenditure together strain internal cash generation and increase reliance on external financing or balance sheet reserves.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased, operating cash flow was negative, and capital expenditure increased, resulting in a free cash flow margin that was sharply negative. The conversion of revenue into cash was weak.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both deteriorated from positive to negative, while capital expenditure was higher. Year over year, revenue and operating cash flow were lower, and the free cash flow deficit widened as capital expenditure grew.
Monitor whether operating cash flow can return to positive levels in upcoming quarters, as negative cash generation combined with elevated capital expenditure creates a significant cash drain.